Is refinancing worth it?

214

Is refinancing really worth it? Are you stuck and don’t know wether or not you should refinance? This article outlines the pros and cons of refinancing your property

mortgages , refinancing , mortgage refinance , interest rate

Refinancing can be worthwhile but is not suitable for everyone, as a general rule of the thumb refinancing can be worthwhile if the current interest rate on your mortgage is at least 2% higher then that of the current market rate. The 2% figure is generally accepted as the safe margin when balancing the costs of refinancing a mortgage against the savings.

There are many further considerations to take into account, such as how long you plan to stay resident in the property. Most sources and lenders say that it takes at least three to four years to realize fully the savings from a lower interest rate, given the possible costs of refinancing your property.

Refinancing can be suitable for those who want to take advantage of lower interest rates rather then facing mounting interest costs from a higher rate, the fees from refinancing will phase out over a longer time span which is why this is suitable for persons looking to spend more then 5 years at their current property. Building equity is also another benefit from converting to a loan with a shorter term.If refinancing does not seem the option to choose then why not speak to a lender who may agree to change the terms on the loan or to apply new terms.

Technorati Tags: , , , , , , , , ,

Personal Finance – How To Reduce Your Monthly Expenses

723

Everyone has fixed expenses which are the basic of needs for our daily living. There is no way to eliminate the fixed expenses but with some innovative budgeting, you could save some good money. Get some ideas from this article.

personal finance, reduce expenses. expenses, debt relief, budgeting, control expense, finance

Everyone has fixed expenses which are the basic of needs for our daily living. There is no way to eliminate the fixed expenses but with some innovative budgeting, you could save some good money from this practice. If you have debt problem, a good practice in expense control and budgeting can help you to free up enough money to pay down your debt and may prevent you from bankruptcy. Of course, to accomplish your goal, you might have to live a very austere existence and scarification.

This article will list down some ideas on how to lower your expenses. While reading this article, you can make a list of you own ideas to cutting down your expenses.

Ways To Save Money

1. Reduce the Number Of Credit Cards

For many people, owning a credit card is the style of life and there are people holding 5 to 10 credit cards. It's so convenient to make payment with credit cards and you many overlook your budget. Although to terminate all credit cards are not possible for many people, you could reduce the number of credit cards in hand.

2. Ask for a Lower Credit Card Interest Rate

A major consumer group conducted a study to find out how easy it is to get a lower credit card interest rate. Fifty-seven percent (57%) of those who simply telephoned their credit card company and asked for a lower interest rate got one instantly.Getting your credit card interest rate lowered depends on various factors. Normally the bank will approve your request if you meet the following conditions:

  • You have a good credit rating — meaning no late pay notations on your credit report and a good credit score;
  • You do not have a high debt-to-income ratio and you do not carry a big balance on your credit card;
  • You do not send in just the minimum payment required each month;
  • You have an excellent payment record with that particular creditor;
  • The credit card is not one that is categorized as "sub-prime", meaning it is not a secured credit card or one marketed exclusively to those with bad credit.

When you call and ask for a lower interest rate, your reasoning should be based on the argument that you deserve it because you're an excellent customer or you're getting better offers from other credit card banks.

3. Always Buy Classic Style on Clothing

Clothing fads come and go so quickly and it will become out of fashion after a season.Instead, buy only good quality classic clothing that you can wear five years from now if you haven't worn it out by then. This will help you to reduce the frequency of buy new cloths.

4. Know Your Budget on Food

According to some survey, people who do not know how much they spend on groceries each month are twenty times more likely to be over their heads in debt than those who know exactly how much they spend on food each month. A lot of money can be saved by with below practices:

  • Stop eating outside – Dinners you prepare at home is significantly less expensive than meals you pay someone else to prepare.
  • Don't buy what you don't really need – Good examples are soft drinks, sugary snacks and other sweets. Giving them up will improve your health, reduce your medical and dental-related expenses and fatten your wallet.
  • Get the best price by comparing supermarkets — Don't shop at the closest supermarket just because it's more convenient. Driving a mile or two down the road can save you as much as $50 per week on groceries.

5. Car pool with your neighbors

If you have neighbors who work close to your company, you can car pooling with them to save gasoline and transportation cost.

Summary

Above are just a few ideas to reduce your monthly expense, sit down and list down your own list. You will surprise that by listing down all your monthly expenses, your will realize that actually there are a lot of expenses which can be reduced or eliminated. And you can use the saved money to pay down your debts.

Technorati Tags: , , , , , , , , ,

4 Money-Saving Tips For Every Homeowner

357

Losing weight. Finding a new job. Spending more time with the family. A new year means setting new goals. Why not make saving money one of them?

4 Money-Saving Tips For Every Homeowner

Losing weight. Finding a new job. Spending more time with the family. A new year means setting new goals. Why not make saving money one of them?

If you’re a homeowner, there are many ways you can cut costs and still live comfortably. The following tips will help lead you to financial success.

* First, set a budget. Figure out exactly how much you spend on the upkeep of your home. Compare each month’s expenses with the previous month’s to get a better idea of how much to budget for each necessity. Then, see what costs you can cut. Once you set a budget, stick to it.

* Save energy. You might be losing a substantial amount of energy dollars during the winter and summer because of air leaks. By caulking, sealing and weather-stripping all cracks and openings, you can save 10 percent or more on your energy bill.

Also, look into replacing older appliances with newer, more energy-efficient alternatives. Your light bulbs can make a difference, too. Fluorescent bulbs are four times more energy efficient than incandescent bulbs.

* Refinance. Shop around to see if you can replace your existing home loan with one that has a lower interest rate. You can easily save hundreds of dollars each month by refinancing your home.

* Purchase a home warranty. Most homeowners don’t account for possible repairs in their annual budget. There is a 68 percent likelihood of a home system or appliance failure in a given year. The average replacement cost of one of these systems or appliances is $1,085. A home warranty is your best defense against unexpected and costly repairs to your home’s appliances and mechanical systems.

The American Home Shield Home Warranty, for example, ensures you get the best possible service through the company’s network of pre-screened technicians. The minute something breaks down, you can contact American Home Shield and a local service technician will schedule an appointment that fits your schedule. The warranty covers a multitude of household systems and appliances, regardless of age.

The American Home Shield Home Warranty is a one-year contract that requires no home inspection to enroll. Several affordable plans are available to fit every budget.

Technorati Tags: , , , , , , , , ,